New Judgment: Re Digital Satellite Warranty Cover Ltd & Anor v Financial Services Authority  UKSC 7
13 Wednesday Feb 2013
On appeal from:  EWCA Civ 1413
The appellant companies sold extended warranty contracts where they contracted to repair or replace satellite television equipment. The FSA made applications for orders to wind up the appellant companies in the public interest under the Financial Services and Markets Act 2000, s 367(1(c) on the grounds that they were “carrying on . . . a regulated activity in contravention of the general prohibition”, which provides that no person may carry out a regulated activity unless they are either an authorised or exempt person.
The Supreme Court unanimously dismissed the appeal. The Court agreed that the contracts were contracts of insurance that fell within the risks identified in Class 16 and were required to be authorised under the 2000 Act. Additionally, the First Council Non-Life Insurance Directive 73/239/EEC (as amended by Council Directive 84/641/EEC) was not intended to limit the freedom of member states to regulate in categories of business not listed in the Annex.